Press Release:
MondoIn
[August 14, 2007]

ISACSOFT announces second quarter net income strongly ahead of 2006 and the nomination of Mr. Robert Lévesque to the board of Directors of the company

MONTREAL, Aug. 14 /CNW Telbec/ - ISACSOFT (TSX: ISF) announced its un-audited interim consolidated financial results for the quarter ended June 30, 2007. The Company also announced that it has filed its un-audited interim financial statements and notes for the quarter June 30, 2007 and its related management's discussion and analysis with Canadian securities regulators. The information is available electronically to interested parties at www.sedar.com and on the Company's web site at www.ISACSOFT.com. ISACSOFT's 2007 second quarter report will be mailed to shareholders during the fourth week of August 2007.

Second quarter 2007 financial results:

EBITDA(1) income of $357,354 compared to $148,713 for second quarter 2006

Net income of $323,811 compared to $127,347 for second quarter 2006

Revenues at $3,581,462 compared to $4,283,904 for second quarter 2006

"Second quarter results show ISACSOFT's ability to counter a very challenging marketplace with measures that provide a better return for its shareholders. While maintaining these controls our focus will continue to be customer satisfaction and the pursuit of new growth opportunities" said Ronald Brisebois, Chairman, President and CEO ISACSOFT INC.

Overall Performance

Second quarter net income closed at $328,811 compared to $127,347 for the second quarter of 2006. Cost compression offset lower demand in all revenue categories.

Working capital was $2,213,733 as at June 30, 2007, ahead by $479,739 of the position of $1,643,994 reported as at December 31, 2006 and is mainly due to the decrease in both accounts receivables and payables.

The Company closed the quarter ended June 30, 2007 with cash and cash equivalents (including restricted cash) of $1,294,692, an increase of $518,569 over the amount of $776,123 reported as at December 31, 2006. The increase is attributable to the profitability of the quarter, combined with the proceeds of disposition of assets of $210,511 and positive changes in working capital, specifically at the accounts receivable level.

(1) EBITDA is defined as Eearnings before interest, taxes, depreciation and amortization and stock based compensation. This measure is considered a non-GAAP measure.

Financial Results:

Quarter ending June 30

2007

2006

REVENUES

3,581,462

4,283,904

Expenses

Operations

2,030,975 2,786,314

Research and development costs

330,908

475,800

Selling, general and administrative expenses

819,915

788,774

3,181,798

4,050,888

Income before the following items

399,664

233,016

Interest net

(12,240)

3,625

Amortization of property and equipment

66,036

102,044

Impairment of goodwill

-

-

Write-down of property and equipment

-

-

Net income (loss) before income taxes

345,868

127,347

Income taxes

22,057

-

Net income (loss)

$ 323,811

$ 127,347

Financial Position:

Unaudited June 30 2007

Audited December 31 2006

ASSETS

Current assets

Cash and cash equivalents

$ 576,872

$ 58,303

Restricted cash

717,820

717,820

Accounts receivable

3,111,568

4,244,553

Work in process

454,498

388,075

Inventory

3,274

5,559

Prepaid expenses

275,994

271,336

5,140,026

5,685,646

Property and equipment

826,957

850,948

Investments

-

-

Goodwill

1,101,894

1,101,894

$ 7,068,877

$ 7,638,488

LIABILITIES

Current liabilities

Bank indebtedness

$ -

$ -

Accounts payable and accrued liabilities

1,538,268

2,294,247

Deferred revenues

1,388,870

1,625,594

Deferred credits

-

32,706

Instalments on long-term debt

89,155

89,105

<

3,016,293

4,041,652

Long-term debt

253,598

380,890

3,269,891

4,422,542

SHAREHOLDERS' EQUITY

Capital stock

55,346,979

55,346,979

Contributed surplus

1,171,393

1,114,763

Deficit

(52,719,386)

(53,245,796)

3,798,986

3,215,946

$ 7,068,877

$ 7,638,488

Nomination of Mr. Robert Levesque to the Board of Directors

Isacsoft's board of Directors approved the nomination of Mr. Robert Lévesque as a Director of the Company. Mr. Lévesque has more than 23 years of experience in technological and financial sectors and is currently a Director at Desjardins Capital de Risque in IT related investments.

"I am pleased to have Mr. Lévesque as part of our board of Directors. I am convinced ISACSOFT will benefit immensely from his experience" said Ronald Brisebois, Chairman of ISACSOFT INC.

About ISACSOFT

ISACSOFT is a provider of software business solutions, information technology-training and systems integration consulting to its national and international customers. The revenue model is based on software licences, recurring maintenance revenues and strategic IT projects targeting key customers and training. ISACSOFT is headquartered in Montréal, Canada with offices in Québec City, Paris, London, Cologne and The Hague.

Summary:

ISACSOFT (TSX: ISF) announced its un-audited interim consolidated financial results for the quarter ended June 30, 2007: EBITDA income of $357,354 compared to $148,713 for the same quarter in 2006, Net income of $323,811 compared to $127,347 for second quarter 2006; revenues at $3,581,462 compared to $4,283,904 for second quarter 2006. Second quarter net income closed at $328,811 compared to $127,347 for the second quarter of 2006. Cost compression offset lower demand in all revenue categories.